Which of the Following Commonly Stated Reasons for Stock Splits

question 27

Multiple Choice

Which of the following commonly stated reasons for stock splits has the weakest empirical evidence in support?

• A)To remain at or return to a preferred trading range
• B)A signal to the market about expected continued strong performance
• C)Increased liquidity
• D)All of the above reasons have strong empirical evidence to support them.

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Definitions:

Universal

A concept, condition, or situation that is applicable to all cases, or common to all members of a category or group.

Reactionary Religious Movements

Groups or movements within religions that resist changes and advocate for a return to traditional beliefs and practices in response to modernization.

Culturally Unstable Societies

Societies that experience rapid changes in cultural norms and values, leading to uncertainty and potential conflict among its members.